Investment Returns from tenanted farmland
Investment Property Databank Ltd produce an annual Let Land Index which measures the total returns to direct investment in tenanted farm land.
It is complied from valuation and management records for individual farms and estates held by institutional and private investors.
The report has been produced for the past 25 years and sponsored by the prestigious land agents, Savills, Carter Jonas, Cluttons and Smiths Gore.
The main aspect to the report is that compared to Commercial property, Residential property, UK Equties and UK gilts, tenanted farmland is the top performing asset over the 3, 5 and 10 year periods.
5 year period (2000 - 2005)
| Farm Land | 16.4% per year |
| Commercial Property | 12.8% per year |
| Residential Property | 12.9% per year |
| Equities | 2.2% per year |
| Gilts | 6.0% per year |
10 year period (1995 - 2005)
| Farm Land | 13.0% per year |
| Commercial Property | 12.8% per year |
| Equities | 7.9% per year |
| Gilts | 7.7% per year |
Over the full 25 years the annualized return to investors in tenanted farmland has been 8.6% per year.
Please go to the Investment Property Databank Ltd web site to see this report in its entirety - it makes interesting reading.
Aug 06